However, on the same day, its leveraged positions on the stock went up by as much as 76%, according to data available.
MTF Paints A Different Story
The Margin Trading Disclosures on the National Stock Exchange (NSE) indicate that leveraged positions on SBI went up to ₹1,038.1 crore as of closing on May 8. That is a 76% increase from the ₹588 crore figure disclosed as of the closing on March 7.
The figure also indicates an increase of 134% from March 30, when the leveraged positions on the stock stood at ₹443 crore.
Before the three-day correction, SBI shares had gained 11% from March 30 levels, but have given up all of those gains across last week and Monday.
As of May 8, SBI is the seventh-most leveraged stock on the MTF book. As of May 7, it ranked 35th in that list.
What Is MTF?
A margin-trading facility is a broker-led service, regulated by SEBI, which allows investors to buy shares by paying only a fraction of the total transaction value, with the broker funding the remaining amount.
The broker also charges interest on the loan, but investors can leverage their position for higher returns, although this also increases the risk factor.
The MTF book allows traders to take positions as high as 3x-4x of the cash balance.
SBI Below Key Levels
It is also the first time after March 30 that shares of SBI closed below the mark of ₹1,000.
The stock ended over 4% lower on Monday with trading volumes nearly at par with last Friday’s figures.
Over 4 crore shares changed hands on Monday as well, but unlike last Friday, 60% of the total trading volumes on Monday were marked for delivery, compared to Friday’s 45%.
Brokerages such as Nomura and IIFL downgraded the stock after its results. Yet, none of the 50 analysts that cover India’s largest lender, have a “sell” rating on the stock.
